Memo 1 SWOT Analysis (MKTG 475)

Memo 1 SWOT Analysis (MKTG 475) - TO: Russ Merz, Firm A CEO...

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TO: Russ Merz, Firm A CEO CC: FROM: RE: Firm A’s SWOT Analysis DATE: September 20, 2011 Section I: SWOT Analysis Strengths: Firm A’s distribution in specialty stores is high with 46% for the SAKE brand and 45.9% for the SAFE brand . This is a strength because specialty stores are estimated to be the preferred distribution channel for high levels of technological expertise ( Markstrat Participant Handbook, Distribution Channels, Page 28 ). Firm A’s SAKE brand is very strong in total units sold (156,915) and units produced (157,000) (Annual Company Report, Brand Results: Contribution by Brand, Page 3) . This strength Firm A’s shareholder value is high. Our firms’ return on investment is 4.26 (Annual Company Report, Stock Market & Key Performance Indicators: Company Key Performance Indicators Shareholder Value, Page 8). When a company has a good stock or shareholder value then more investors will buy into the company, giving the firm a more stable financial background. Firm A’s total Sonite market share is the highest at 26.3% (Annual Company Report, Stock Market & Key Performance Indicators: Company Key Performance Indicators Market Share, Page 8). Having a high market share is a strength because it signifies that our product is purchased more over our competitors’ products. Firm A’s total Sonite retail sales are the highest with $102,406 (Annual Company Report, Stock Market & Key Performance Indicators: Company Key Performance Indicators Retail Sales, Page 8). Having high retail sales is a strength because it signifies that our product is purchased more over our competitors’ products and ensures that Firm A might have a stronger financial background. Weaknesses: Firm A’s SAFE brand is struggling in units sold (60,538), units produced (80,000), and incoming revenue ($15,020) (Annual Company Report, Brand Results: Contribution by Brand, Page 3). This is a core weakness because the SAFE brand is not producing in terms of revenues and sales demand, which then increases our units in inventory and inventory costs. Firm A’s lowest cumulative target segments are the Singles with just 10% for the SAKE brand and 15% for the SAFE brand and the Others with only 10% for both SAKE and SAFE brands (Annual Company Report, Decision Summary: Brand Management, Page 6). This is a weakness because it will hurt our sales revenues and potential profit. Firm A’s market research studies are at the minimum level, where we only conduct 4 out of 12
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This note was uploaded on 01/29/2012 for the course MKTG 475 taught by Professor Russmerz during the Fall '11 term at Eastern Michigan University.

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Memo 1 SWOT Analysis (MKTG 475) - TO: Russ Merz, Firm A CEO...

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